ISLAMABAD (May 11 2003) : Endorsing the recommendations of Ministry of Petroleum and Natural Resources, the government has exempted new types of CNG equipment, compressors and allied apparatus from payment of custom duty and sales tax.
The Central Board of Revenue (CBR) has included more Chinese, Italian and New Zealand made items like CNG compressors and related equipment in the list of exempted items through an amendment in the SRO 38(I)/98 issued here on Saturday.
The decision was taken to popularise the use of consumer-and environment-friendly motor vehicles fuel.
The exemption would be available on CNG kits and cylinders up to June 30, 2004 as per conditions laid down in the amended SRO 38(I)/98.
Whereas CNG machinery and compressors were liable to 5 percent custom duty from November 1, 2002 to June 30, 2004, these items would remain exempt from payment of sales tax.
The CNG equipment exempted from custom duty and sales tax include Chongqing Gas Compressor Factory China (CCF); Idro Meccanica, SR, 1, Italy; Nuovo Pignone, Italy; Intermech Limited, New Zealand; Sichnan Jinxing China; Idro Meccanica Italy; Nuovo Pignone, Italy, ANGI International USA and other items.
The CBR has made amendments in Table-I, Table-II, Table-III and Table-V of the SRO 38(I)/98 for notifying exemption and also specified the models and types of the exempted items.
Sources said that the government is making serious efforts to promote CNG culture by setting-up of new CNG stations to generate employment.
The CBR has used powers conferred by section 19 of the Custom Act, 1969 (IV of 1969) and clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990 to notify exemption.
